Network establishment in family firm internationalisation: a family social capital perspective

Abstract

Drawing on Family Social Capital (FSC) and network theories, this study investigates how Family Firms (FFs) identify and establish network ties with external actors in the context of internationalisation. Adopting a multiple-case study on ten large FFs internationalising to China and India, the main findings suggest that FSC guides family managers during the process of establishing network ties with external actors. Trust still plays a key role in selecting and deciding on forming network ties with external actors, even in large FFs. Furthermore, despite being non-identical across cultures, familial commonalities encourage FFs to establish strategic network relationships with one another. Nevertheless, resource dependency and industry features mitigate this tendency. During the process of increasing network centrality and network closure, family members tend to be directly involved and leverage their FSC in developing and nurturing intimate network relationships with external actors, leading to a sense of solidarity and devotion among actors within the FFs' networks.